Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to complete a month of payroll information for Wayland. Wayland Custom Woodworking is located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Waylands EIN is 91-7444533, and the Utah Employer Account Number is 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method.

For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2.

The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees. No employee will reach the SUTA wage cap.

Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt employees.

Example: Annual Salary to Hourly Rate, Nonexempt Employee

Employee Vardens annual salary is $42,000, and he is a nonexempt employee.

Hourly rate = $42,000 / (52 40) = $42,000 / 2,080

Hourly rate = $20.19231 per hour

Example: Period Gross Pay, Salaried Employee

Employee Chinson earns an annual salary of $24,000 and is paid semimonthly.

Period gross pay = $24,000 / 24 = $1,000 gross pay

For pay periods with holiday hours: determine the amount paid per day, multiply by the number of days applicable to each pay.

Annual salary: $24,000 / (52 5) = $24,000 / 260 = $92.30769 (rounded to 5 decimal points) per day.

After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings. Employees are paid for the following holidays occurring during the final quarter:

• Thanksgiving day and the day after, Thursday and Friday, November 2829.
• Christmas, which is a Wednesday. Employees receive holiday pay for Tuesday, December 24, and Wednesday, December 25.

For the completion of this project, refer to the tax-related information in the table below. For federal withholding calculations, use the percentage method tables in Appendix C, which is provided below. For Utah state withholding calculations, use the Utah Schedule 3 tax tables linked below (ensure to use the appropriate Utah table based on each employee's marital status). Both 401(k) and insurance are pre-tax for federal income tax and Utah income tax. Round calculations to get to final tax amounts and 401(k) contributions after calculating gross pay.

Federal Withholding Allowance (less 401(k), Section 125)	$175.00 per allowance claimed
Federal Unemployment Rate (employer only)	0.6% on the first $7,000 of wages
Semimonthly Federal Percentage Method Tax Table	Appendix C Table #3
State Unemployment Rate (employer only)	2.6% on the first $35,300 of wages
State Withholding Rate (less 401(k), Section 125)	See Utah Schedule 3, Table A-1 or use the Excel Version of Schedule 3

October 1:

Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Waylands staff:

Employee Number	Name and Address	Payroll information
00-Chins	Anthony Chinson	Married, 1 Withholding allowance
	530 Sylvann Avenue	Exempt
	Logan, UT 84321	$24,000/year + commission
	435-555-1212	Start Date: 10/1/2019
	Job title: Account Executive	SSN: 511-22-3333
00-Wayla	Mark Wayland	Married, 5 withholding allowances
	1570 Lovett Street	Exempt
	Logan, UT 84321	$75,000/year
	435-555-1110	Start Date: 10/1/2019
	Job title: President/Owner	SSN: 505-33-1775
01-Peppi	Sylvia Peppinico	Married, 7 withholding allowances
	291 Antioch Road	Exempt
	Logan, UT 84321	$43,500/year
	435-555-2244	Start Date: 10/1/2019
	Job title: Craftsman	SSN: 047-55-9951
01-Varde	Stevon Varden	Married, 2 withholding allowances
	333 Justin Drive	Nonexempt
	Logan, UT 84321	$42,000/year
	435-555-9981	Start Date: 10/1/2019
	Job title: Craftsman	SSN: 022-66-1131
02-Hisso	Leonard Hissop	Single, 4 withholding allowances
	531 5th Street	Nonexempt
	Logan, UT 84321	$49,500/year
	435-555-5858	Start Date: 10/1/2019
	Job title: Purchasing/Shipping	SSN: 311-22-6698
00-Succe	Student Success	Single, 1 withholding allowance
	1650 South Street	Nonexempt
	Logan, UT 84321	$36,000/year
	435-556-1211	Start Date: 10/1/2019
	Job title: Accounting Clerk	SSN: 555-55-5555

The departments are as follows:

Department 00: Sales and Administration

Department 01: Factory workers

Department 02: Delivery and Customer service

You have been hired as of October 1 as the new accounting clerk. Your employee number is 00-SUCCE. Your name is Student Success. Your address is 1650 South Street, Logan, UT 84321. Your phone number is 435-556-1211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in 07/16/2024, and your Social Security number is 555-55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year.

The balance sheet for WCW as of November 30, 2019, is as follows:

Wayland Custom Woodworking Balance Sheet November 30, 2019
Assets				Liabilities & Equity
Cash	$	1,085,254.38		Accounts Payable	$	112,747.25
Supplies		42,240.11		Salaries and Wages Payable		10,158.53
Office Equipment		87,250.00		Federal Unemployment Tax Payable		85.71
Inventory		167,139.49		Social Security Tax Payable		3,158.42
Vehicle		25,000.00		Medicare Tax Payable		738.66
Accumulated Depreciation, Vehicle				State Unemployment Tax Payable		681.74
Building		164,000.00		Employee Federal Income Tax Payable		1427.61
Accumulated Depreciation, Building				Employee State Income Tax Payable		1,133.72
Land		35,750.00		401(k) Contributions Payable		1,002.34
Total Assets		1,606,633.98		Employee Medical Premiums Payable		750.00
				Notes Payable		224,750.00
				Utilities Payable
				Total Liabilities		356,633.98
				Owners' Equity		1,250,000.00
				Retained Earnings		-
				Total Equity		1,250,000.00
				Total Liabilities and Equity		1,606,633.98

Voluntary deductions for each employee are as follows:

Name	Deduction
Chinson	Insurance: $50/paycheck
	401(k): 3% of gross pay
Wayland	Insurance: $75/paycheck
	401(k): 6% of gross pay
Peppinico	Insurance: $75/paycheck
	401(k): $50 per paycheck
Varden	Insurance: $50/paycheck
	401(k): 4% of gross pay
Hissop	Insurance: $75/paycheck
	401(k): 3% of gross pay
Student	Insurance: $50/paycheck
	401(k): 3% of gross pay

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Signature of Employer or Authorized Representative Today's Date (mm/dd/yyyy) Title of Employer or Authorized Representative Last Name (Family Name) First Name (Given Name) Employer's Business or Organization Name Employer's Business or Organization Address (Street Number and Name) City or Town State Zip Code Section 3. Reverification and Rehires (To be completed and signed by employer or authorized representative.) A. New Name (if applicable) Last Name (Family Name) First Name (Given Name) Middle Initial B. Date of Rehire (if applicable) (mm/dd/yyyy) C. If employee's previous grant of employment authorization has expired, provide the information for the document from List A or List C the employee presented that establishes current employment authorization in the space provided below. Document Title: Document Number: Expiration Date (if any)(mm/dd/yyyy): I attest, under penalty of perjury, that to the best of my knowledge, this employee is authorized to work in the United States, and if the employee presented document(s), the document(s) I have examined appear to be genuine and to relate to the individual. Signature of Employer or Authorized Representative: Today's Date (mm/dd/yyyy): Print Name of Employer or Authorized Representative: THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. Signature of Employer or Authorized Representative Today's Date (mm/dd/yyyy) Title of Employer or Authorized Representative Last Name (Family Name) First Name (Given Name) Employer's Business or Organization Name Employer's Business or Organization Address (Street Number and Name) City or Town State Zip Code Section 3. Reverification and Rehires (To be completed and signed by employer or authorized representative.) A. New Name (if applicable) Last Name (Family Name) First Name (Given Name) Middle Initial B. Date of Rehire (if applicable) (mm/dd/yyyy) C. If employee's previous grant of employment authorization has expired, provide the information for the document from List A or List C the employee presented that establishes current employment authorization in the space provided below. Document Title: Document Number: Expiration Date (if any)(mm/dd/yyyy): I attest, under penalty of perjury, that to the best of my knowledge, this employee is authorized to work in the United States, and if the employee presented document(s), the document(s) I have examined appear to be genuine and to relate to the individual. Signature of Employer or Authorized Representative: Today's Date (mm/dd/yyyy): Print Name of Employer or Authorized Representative: THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education.